This quotation appeared in the December 1988 issue of Euromoney. The proliferation of futures and options markets

Question:

This quotation appeared in the December 1988 issue of Euromoney. The proliferation of futures and options markets has created new opportunities for international investors. It is now possible to change investment exposure from one country to another through the use of derivative instruments, augmented by a limited number of individual securities. Asset allocation in most major markets is now feasible using futures and options.

Discuss this quotation and the reasons for using derivative rather than cash instruments to facilitate asset allocation decisions.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

Question Posted: